Securities Selection


Securities Selection

Every security included in the Investable Universe is subject to double screening: the application of negative exclusion criteria of certain sectors or activities and

the application of positive assessment criteria based upon governance, social, environment and human rights issues.

Negative selection

We say NO to investments in weapons, tobacco, gambling, nuclear power, pesticides, activities prejudicial to human rights and other controversial activities, excluding companies engaged in these practices.

We currently do not invest in the financial, oil and mining sectors.

We exclude countries that have the death penalty or do not guarantee political freedoms and civil rights from the securities portfolio.

Positive selection

We say YES to the opportunity to invest in the best performing countries from the socio-environmental perspective and in companies with greater focus on sustainability and collective well-being. For this reason, issuers that have passed the first selection are analysed in detail and assessed according to environmental, social and governance parameters. Each one is attributed a score based upon the assessment of dozens of indicators (65 for companies and 55 for countries).

Only issuers with scores above an absolute threshold and found to be among the best in their sector (“best in class” approach) will form part of the Investable Universe of Etica SGR’s funds.

The sources

The analyses of social and environmental responsibility of issuers conducted by Etica Sgr are based upon the use of a number of sources: specialised databases able to provide reliable and timely indicators, affiliated partners such as the ICCR (Interfaith Center on Corporate Responsibility), PRI (Principles for Responsible Investments), CDP (Carbon Disclosure Project) and EUROSIF (European Sustainable Investment Forum), information originating from NGOs such as Amnesty International and Legambiente, searches in specialist press, corporate documents published by companies (financial statements, sustainability reports, etc.) and information from direct dialogue with companies.


The securities selection process and that of engagement with companies is certified for the Quality Management System, in compliance with the requirements of the EN ISO 9001:2015 standard.


Before subscribing, please read the KIIDs and Prospectus available from placing agents

The placement of the "Sistema Etica" funds is only available in Italy. For further information, please refer to the Italian version of the website